Bitcoin Faces Pressure From 24-Hour Factors Amid January Waves

This leading cryptocurrency continues to be volatile at the start of 2026, experiencing significant fluctuations due to various factors from 24/7 trading activity. At the end of January, Bitcoin briefly dipped below the $87,000 level, erasing most of the gains achieved over the past month. Data from BlockBeats shows that Bitcoin’s performance for January ended with a negative return of -0.5%, a stark contrast to its previous monthly performance.

Price Volatility Amid Geopolitical and Economic Factors

The peak of optimism occurred when Bitcoin reached $97,000 in mid-January, but that momentum was not sustainable. The approximately 10.9% decline from this monthly high was driven by complex factors affecting the digital market. Elements from 24-hour trading include rising geopolitical tensions increasing uncertainty, a diminished appeal of Bitcoin as a safe haven asset, and a slowdown in interest rate cuts by the Federal Reserve that disappointed market expectations.

On the other hand, technical pressures from market deleveraging and large outflows from institutional ETF products further worsened the situation. Institutional investors appear to be re-evaluating their positions, creating a domino effect that triggered massive sell-offs. This situation indicates that factors from the 24-hour macroeconomic and geopolitical environment have a significant impact on digital asset market sentiment.

Historical Analysis: Bitcoin’s Performance in January

To provide broader context, historical data shows that January is not always a profitable month for Bitcoin. Over the past 13 years, Bitcoin’s average return in January has been +3.81%, with a median return of +0.62%. These statistics reveal high inherent volatility, with Bitcoin recording gains seven times and losses six times during this period.

This year’s negative performance serves as a reminder to investors that historical patterns do not always repeat, especially when external factors such as geopolitical conditions and monetary policies undergo fundamental changes. The January 2026 decline underscores the importance of diversification and risk management as core principles when investing in volatile crypto assets.

Current Market Conditions and Future Outlook

Entering February, Bitcoin shows signs of recovery. Recent data as of mid-February indicates Bitcoin trading at $69.18K, with a 24-hour increase of +5.82%, suggesting buying interest from certain market participants after a period of excessive selling. Although still far from the January peak, this rebound signals that the market is seeking a new equilibrium point.

Looking ahead, investors should continue to monitor evolving factors from the 24-hour economic and geopolitical landscape. With the Federal Reserve still in an observation cycle and various geopolitical risks not fully resolved, short-term volatility in Bitcoin may persist. However, the long-term outlook will largely depend on how the market incorporates these macroeconomic factors into digital asset valuations.